Editing Economy of Eritrea (section)

==Currency, exchange rate, and inflation==

The official currency is the [[Eritrean nakfa]] (ERN), introduced in November 1997. In early 2005, likely in an effort to increase foreign capital reserves, the Eritrean government decreed that all transactions in Eritrea must be conducted in nakfa. It soon became illegal for individuals to hold and exchange foreign currency. As of January 1, 2005, the government set the foreign exchange rate at US$1=ERN15.<ref name=cp/>

[[Inflation]] continues to be a problem in Eritrea, particularly as years of drought push grain prices higher and defense expenditures remain high. The International Monetary Fund estimates that in 2003 (the most recent year for which figures are available) average inflation reached 23 percent.<ref name=cp/>

[[File:Massawa Highway (8527952867).jpg|thumb|The Massawa-Asmara Highway, built as part of the [[Wefri Warsay Yika'alo]] program.]]